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SPECIAL FEATURE<br />
30 years of market leadership for<br />
<strong>Toyota</strong> South Africa Mo<strong>to</strong>rs<br />
<strong>Toyota</strong> South Africa Mo<strong>to</strong>rs (TSAM)<br />
ended 2009 with a market share<br />
of 23% for the year. TSAM’s <strong>to</strong>tal<br />
domestic sales in 2009 were 90 701 units in a<br />
<strong>to</strong>tal market of 395 230 vehicles. Not only has<br />
TSAM been the overall market leader in South<br />
Africa since 1980, but it is also the country’s<br />
largest exporter of built-up vehicles.<br />
South Africa felt the full impact of the<br />
global financial crisis during 2009 and saw<br />
<strong>to</strong>tal vehicle sales drop off sharply from the<br />
533 387 units for 2008 <strong>to</strong> 395 230 units for<br />
2009, a decrease of 25.9%.<br />
<strong>Toyota</strong> dominates South African<br />
market<br />
Through 2009 the star performer in TSAM’s<br />
market leading product line was the Hilux,<br />
which ended 2009 on a high as the <strong>to</strong>p<br />
selling vehicle in South Africa. The Corolla<br />
and Fortuner also performed well in the<br />
passenger vehicle sec<strong>to</strong>r. The success of<br />
these vehicles, based on a solid reputation of<br />
reliability, durability, overall value for money<br />
and low cost of operation, has seen TSAM<br />
lead the market in vehicle sales for the past<br />
30 years in succession.<br />
This extended term of market leadership<br />
is all the more remarkable as it has been<br />
achieved in a sec<strong>to</strong>r of the economy<br />
renowned for its cyclical nature. The mo<strong>to</strong>r<br />
industry is easily influenced by volatility in<br />
the social and business environments but<br />
TSAM has s<strong>to</strong>od the test of time in a rapidly<br />
changing South Africa, not only as a domestic<br />
supplier of vehicles but as a leading exporter<br />
of vehicles as well.<br />
TSAM’s success over the past 30 years is<br />
founded on a combination of forward thinking<br />
and the rigid application of a range of internal<br />
and external strategies. TSAM’s market<br />
philosophy has been formulated <strong>to</strong> ensure<br />
that a wide-ranging product line-up provides<br />
effective transport solutions, <strong>to</strong>gether with<br />
the highest levels of cus<strong>to</strong>mer support and<br />
satisfaction.<br />
6 <strong>Toyota</strong> South Africa Mo<strong>to</strong>rs Sustainability Report 2010<br />
TSAM’s market leading vehicles, the S<strong>to</strong>ut (above), the latest Hilux model (opposite page, left) and the <strong>to</strong>p-selling<br />
Corolla sedan (opposite page, right).<br />
Dr Albert Wessels founded TSAM in 1961. Celebrating the sale of the 100 000 th Corolla in 1971.<br />
A new approach <strong>to</strong> the local market<br />
From the outset TSAM set about changing<br />
the outlook of the South African mo<strong>to</strong>rist<br />
by demonstrating that there were better<br />
efficiencies and cus<strong>to</strong>mer support levels<br />
available in a market that up until then had<br />
been dominated by large American type<br />
vehicles with largely centralised distribution<br />
and service networks. TSAM <strong>to</strong>ok its effective<br />
transport solutions <strong>to</strong> the people, with support<br />
in rural communities that had not been seen<br />
before. Today the company still has the<br />
widest and most stable dealer network in the<br />
country.<br />
TSAM’s success was founded on its<br />
reputation as a supplier of light commercial<br />
vehicles with the one-and-a-half-<strong>to</strong>n S<strong>to</strong>ut<br />
an immediate success. This was followed<br />
by the smaller Tiara and Corona pick-ups,<br />
both derived from passenger vehicles, and<br />
the two-<strong>to</strong>n Dyna. A significant breakthrough<br />
came with the introduction of the Hilux in<br />
1969, a pick-up that proved <strong>to</strong> be just the<br />
right vehicle for South Africa at the time. The<br />
Hilux has built on that success, dominating<br />
the light commercial vehicle market for the<br />
40 years since its release. TSAM has built in<br />
excess of one million left and right hand drive<br />
Hilux vehicles, which have been exported <strong>to</strong><br />
Europe and the rest of Africa.